FASB votes to issue ASU on disaggregation of income statement expenses

At its June 26 meeting, the FASB completed redeliberations of its Disaggregation of Income Statement Expenses project and directed the staff to draft a final standard, which is expected to be issued later this year. Among other final decisions, the FASB decided the new disclosures will be required in both interim and annual financials (with the exception of certain policy disclosures) and will be required on a prospective basis, with optional retrospective application. The new standard will only apply to public business entities and will be effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. For more information, refer to the meeting summary on the FASB website.